Detailed Project Report
Handmade Paper from Waste
—
Prepared on: 26 October 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹16.54 L
- Term loan from bank
- ₹10.75 L
- Promoter’s contribution
- ₹1.65 L
- Subsidy
- ₹4.13 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-5.91 L
- Average DSCR
- -1.54
- Break-even (% of capacity used)
- —
02 Promoter and unit
| Promoter name | — |
|---|---|
| Business / firm name | — |
| Legal form | Proprietorship |
| Address of the unit | — |
| Applicant category | General · Rural |
03 The project
Make wood-free handmade paper from cotton rags, jeans waste and farm fibres.
| Main product or service | Handmade Paper from Waste |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Stationery, greeting-card and invitation makers
- Gift-bag and file makers
- Government offices and PSUs
- Export houses
- Exhibitions and craft fairs
- Bulk institutional orders
- Paper converters
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Rag chopper | 1 | 70,000 | 70,000 |
| Hollander beater | 1 | 2,85,000 | 2,85,000 |
| Auto vat (× 4) | 1 | 1,60,000 | 1,60,000 |
| Hydraulic press | 1 | 2,75,000 | 2,75,000 |
| Calendering machine | 1 | 4,25,000 | 4,25,000 |
| Cutting machine | 1 | 3,50,000 | 3,50,000 |
| Weighing balance | 1 | 10,000 | 10,000 |
| Total | 15,75,000 |
Pre-filled from: PMEGP sample project report — Hand Made Paper from Waste (prepared by Udyami/Samadhan); DGFT — ITC (HS) classification of export and import items. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Cotton hosiery rags and jeans waste — ₹80,000 a ton; 30 tons of rags make 24 tons of paper
- Adhesives and colours — ₹2.40 lakh a year at full capacity
- Other fibres — jute, bagasse, banana, straw, leaves, flowers — used for special textures
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 15.75 |
| Contingency | 0.79 |
| Total fixed capital | 16.54 |
| Working capital margin | 0.00 |
| Total project cost | 16.54 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 1.65 | 10.0 |
| Subsidy | 4.13 | 25.0 |
| Term loan from bank | 10.75 | 65.0 |
| Total | 16.54 | 100.0 |
| Working capital loan (outside project cost) | 0.00 |
09 Key assumptions
| Selling price | ₹0 per units |
|---|---|
| Raw material & packing cost | ₹0 per units |
| Capacity used each year | 60% · 70% · 80% · 80% · 80% · 80% · 80% |
| Term loan interest rate (% a year) | 11% · 84 months (Moratorium 6) |
| Working capital method | Turnover method (RBI) · Working capital interest (% a year) 11% |
| Income tax rate | 25% |
| Yearly price and cost rise | 0% |
10 Production and sales
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capacity used | 60% | 70% | 80% | 80% | 80% | 80% | 80% |
| Production (units) | 6,000 | 7,000 | 8,000 | 8,000 | 8,000 | 8,000 | 8,000 |
| Sales | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
11 Projected profitability
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Sales | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Raw material and packing | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Power and fuel | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Salaries and wages | 2.88 | 2.88 | 2.88 | 2.88 | 2.88 | 2.88 | 2.88 |
| Rent | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Administration | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Selling and distribution | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Repairs and maintenance | 0.33 | 0.33 | 0.33 | 0.33 | 0.33 | 0.33 | 0.33 |
| Insurance | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 |
| Total cost of operations | 3.29 | 3.29 | 3.29 | 3.29 | 3.29 | 3.29 | 3.29 |
| Operating profit (EBITDA) | -3.29 | -3.29 | -3.29 | -3.29 | -3.29 | -3.29 | -3.29 |
| Depreciation | 2.48 | 2.11 | 1.79 | 1.52 | 1.29 | 1.10 | 0.94 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 1.16 | 1.01 | 0.83 | 0.64 | 0.46 | 0.28 | 0.10 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -6.94 | -6.41 | -5.91 | -5.46 | -5.05 | -4.67 | -4.33 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -6.94 | -6.41 | -5.91 | -5.46 | -5.05 | -4.67 | -4.33 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -6.94 | -6.41 | -5.91 | -5.46 | -5.05 | -4.67 | -4.33 |
| Depreciation | 2.48 | 2.11 | 1.79 | 1.52 | 1.29 | 1.10 | 0.94 |
| Cash accruals (PAT + depreciation) | -4.46 | -4.30 | -4.12 | -3.94 | -3.76 | -3.57 | -3.39 |
| Term loan repaid | 0.83 | 1.65 | 1.65 | 1.65 | 1.65 | 1.65 | 1.65 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -5.28 | -5.96 | -5.77 | -5.59 | -5.41 | -5.23 | -5.05 |
| Cash and bank | -5.28 | -11.24 | -17.01 | -22.60 | -28.01 | -33.24 | -38.29 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 5.79 | 5.79 | 5.79 | 5.79 | 5.79 | 5.79 | 5.79 |
| Reserves and surplus | -6.94 | -13.35 | -19.26 | -24.72 | -29.77 | -34.45 | -38.77 |
| Term loan outstanding | 9.92 | 8.27 | 6.62 | 4.96 | 3.31 | 1.65 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 8.77 | 0.71 | -6.86 | -13.97 | -20.68 | -27.00 | -32.99 |
| Net fixed assets | 14.06 | 11.95 | 10.16 | 8.63 | 7.34 | 6.24 | 5.30 |
| Preliminary expenses not written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Current assets (stock and debtors) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Cash and bank | -5.28 | -11.24 | -17.01 | -22.60 | -28.01 | -33.24 | -38.29 |
| Total assets | 8.77 | 0.71 | -6.86 | -13.97 | -20.68 | -27.00 | -32.99 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -1.65 | -1.24 | -1.33 | -1.43 | -1.56 | -1.70 | -1.88 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -1.54 |
|---|---|
| Lowest DSCR | -1.88 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 2.48 | 2.11 | 1.79 | 1.52 | 1.29 | 1.10 | 0.94 |
Written-down value method at Income-tax Rules block rates (building 10%, plant & machinery 15%, furniture 10%, computers 40%). Change them if your CA uses other rates.
16 Term loan repayment
| Year | Opening | Interest | Term loan repaid | Closing |
|---|---|---|---|---|
| 1 | 10.75 | 1.16 | 0.83 | 9.92 |
| 2 | 9.92 | 1.01 | 1.65 | 8.27 |
| 3 | 8.27 | 0.83 | 1.65 | 6.62 |
| 4 | 6.62 | 0.64 | 1.65 | 4.96 |
| 5 | 4.96 | 0.46 | 1.65 | 3.31 |
| 6 | 3.31 | 0.28 | 1.65 | 1.65 |
| 7 | 1.65 | 0.10 | 1.65 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- State Pollution Control Board consent (check the category for your process)
- Factory licence if 10 or more workers use power
18 Government schemes that may apply
- Prime Minister's Employment Generation Programme (PMEGP)
- Pradhan Mantri MUDRA Yojana (PMMY) – Shishu, Kishor, Tarun, Tarun Plus
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
- Stand-Up India
19 Sources
- PMEGP sample project report — Hand Made Paper from Waste (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/PROJECT_PROFILE_FOR_HAND_MADE_PAPER_FROM_WASTE_%28_HAND_MADE_PAPER_AND_FIBRE_INDUSTRY_%29.pdf
- DGFT — ITC (HS) classification of export and import items — https://www.dgft.gov.in/CP/?opt=itchs-import-export
This report is a projection from the figures entered by the promoter. It is not a bank appraisal or a guarantee of a loan or subsidy. Check every figure with current quotations and your chartered accountant before submitting it.